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F I S C A L I M P A C T R E P O R T

SPONSOR Griego

ORIGINAL DATE

LAST UPDATED

2/01/06

HB

SHORT TITLE Public Utility Right of Way Width Requirement

SB 534

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Regulation Commission (PRC)

Attorney General’s Office (AGO)

SUMMARY

Synopsis of Bill

Senate Bill 534 amends the Public Utility Act at Section 62-1-4 (eminent domain) and Section

62-9-3.2 (right-of-way width) to allow the condemnation of property less than 100 feet in width

for transmission lines without submitting an application to the Public Regulation Commission for

determination of the necessary width for lines or acreage for stations.

SIGNIFICANT ISSUES

AGO indicates that although transmission line right of way without PRC determination is limited

to 100 feet or less, no numerical cap is placed on the acreage for stations. Under current law, in

order to construct a transmission line and associated facilities on a right of way width in excess

of 100 feet the utility is required to apply to the PRC for determination of the necessary width,

unless the utility and the property owner agree to the width. There is no specific reference cur-

rently in § 62-1-4 to stations; they are regarded as “associated facilities.”

ADMINISTRATIVE IMPLICATIONS

The legislation could result in the adjudication of fewer right of way cases before the PRC.

Senate Bill 534 – Page 2

TECHNICAL ISSUES

The AGO notes the bill deletes the term “associated facilities” and uses the term “stations” but

leaves it undefined. If the bill is enacted, arguably, there may be no provision authorizing ap-

propriation of property needed for construction or maintenance of facilities not classified as ei-

ther transmission lines or stations.

According to the PRC:

1.

Section 1, paragraph A (page 1, line 25) and Section 2, paragraph B (page 3, line 19) con-

tain apparently contradictory definitions of a transmission line. The language addition in

Section 1, paragraph A (page 1, line 25) uses the term “transmission lines” associated

with the phrase “not exceeding a strip one hundred feet wide”. Section 2, paragraph B

(page 3, line 19), however, defines a “transmission line” as any electric transmission line

requiring a width for right of way of greater than one hundred feet. (Emphasis added.)

2.

In Section 1, paragraph A (page 1, line 25 and page 2, lines 1 and 2) the addition of,

“…an area…sufficient for the physical and design requirements of stations”, leaves the

area to be acquired to be determined by a utility. The only constraint is sufficiency for

the station. In urban areas, acquisition of large area may be controversial or detrimental

to the public interest.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Current law will continue to govern, and PRC determination of right of way widths in excess of

100 feet for both lines and associated facilities will be required unless the parties agree as to the

width.

POSSIBLE QUESTIONS

Should a consistent definition of “transmission line” be added to Section 62-1-4 of the Public

Utility Act.

Should additional conditions such as, “as approved by the commission” or “no more than one

acre in urban areas and no more than 5 acres in rural areas, without prior approval of the com-

mission” be added to the suggested changes.

Should the term “stations” be explicitly defined.

BE/mt